Electronic shelf labels are one of the most significant technological innovations for bricks-and-mortar retailers in recent years. These small, digital displays are revolutionising the way prices and product information are presented and managed and are now firmly established in the retail sector: In Germany, 56% of retail companies already use electronic shelf labels - in food retail, the figure is as high as 94% (source: EHI, Technologie Trends im Handel 2023). But what can electronic shelf labels do, how do they work and what needs to be considered in order to fully utilise their benefits?
The advantages of digital price labelling are convincing
The use of ESLs offers many advantages over traditional paper labels, as digital price labelling at the shelf is...
- up-to-date & reliable: Changes to the content are implemented immediately on the shop floor, ensuring that prices and product information are always up to date. This prevents price discrepancies between shelf and checkout, which also increases customer satisfaction.
- flexible: With the help of digital price labelling, dynamic pricing strategies can be implemented automatically in stationary retail.
- efficient: Time-consuming work steps such as printing, distributing and affixing conventional paper labels are no longer necessary when using electronic shelf labels. Thanks to this time saving, employees can concentrate more on their core business, such as customer service.
- sustainable & modern: Most ESLs have long battery life and can be used for many years, the consumption of paper and ink is reduced and customers are left with a high-quality and modern impression of the market through the use of new technologies.
More than just a price display
However, electronic shelf labels can do much more than just display prices. There are now ESLs with Press studs or Touch displays with which further information is displayed directly on the screen. Provided with a security PIN, this can also be internal information for employees. ESL is also optionally available with built-in LED indicator lightswhich can light up in different colours. These can be used, for example, to guide customers or employees to specific shelves and products.
Technical infrastructure for ESL systems
A functioning ESL system consists of several components: First, of course, the electronic shelf labels required. Not to be forgotten here are the suitable fixing units for stable and robust attachment of the ESL to the shelf. Another component of an ESL system is the Transmission technologywhich are used to control the connected ESLs and distribute content. Depending on the manufacturer, these components are called gateways or access points, for example. Finally, a Software required to manage and control the entire ESL system. The manufacturers of electronic shelf labels provide customised solutions for this.
The choice of manufacturer is crucial
There are numerous ESL manufacturers on the market today, offering a wide range of ESL series. The choice of manufacturer and model depends entirely on the budget and the requirements that the respective electronic shelf label must fulfil. Before deciding on a manufacturer, it is worth comparing the various offers, manufacturers and models. In addition to the Price and functions can also Longevity and delivery capability of the ESL and the reliability of the manufacturer are criteria for the final decision.
Even the most modern ESLs become outdated or break down after a few years, so sooner or later they have to be replaced. You don't always want to use the same models or manufacturers as before, which can make a change of manufacturer necessary. It may also be necessary within a shop, ESL models from different manufacturersif, for example, different areas of application or special functions are to be mapped.
ESL management with PRESTIGEenterprise
Once the hardware for the electronic price tags is in place, the biggest challenge is to control the price labelling. The information on the labels must be managed in terms of content and the system must be integrated into the existing IT landscape. An advantage here is the use of a manufacturer-independent software platformsuch as PRESTIGEenterprise Online Software AG offers. Manufacturer-independent software preserves the company's own sovereignty and flexibility with regard to the use of ESL. This means that ESL models from different manufacturers can be used simultaneously in the markets and a change of manufacturer is also easily possible if required.
Layout & design of ESL content
Another advantage of the manufacturer-independent software is the design of the content for the electronic shelf labels. This saves you having to familiarise yourself with the various design programmes of the individual ESL manufacturers and designs do not have to be created multiple times. PRESTIGEenterprise contains a central design programme for this purpose, which brings product information into a presentable form. The so-called templates in PRESTIGEenterprise define the layout and design of the ESL content. The PRESTIGEenterprise Designer is used to create a template in a specific format with clearly defined fields (e.g. manufacturer, item information, price, logo, quantity and graphics). The fields can then be easily and automatically filled with content via a connection to merchandise management systems. An interface to the ESL management systems of various manufacturers enables the content to be distributed to the ESL.
Digitalisation as a success factor - one step further with ESL
Increasing digitalisation means that digital solutions are becoming ever more important for effectively addressing customers. This new generation of pricing allows you to bring new, intelligent ways of communicating information to your stores. Increase through our ESL solution customers' interest in your products and service. Show that you as a retailer are familiar with innovation and create forward-looking shelf labelling that improves displays, optimises internal processes and thus allows more time for sales. Invest in the future of retail!
What are electronic shelf labels?
Electronic shelf labels (ESL) or digital price tags are small displays that are attached to the shelf under the product and indicate the price of the goods as well as other important product information. In retail, the small screens are replacing conventional paper price tags, which have to be printed in large numbers, laboriously attached to the shelf and replaced at the slightest change.
Depending on requirements and budget, ESLs are available in a wide variety of designs, sizes and housing colours. The colours that can be shown on the displays also differ between the individual ESL series and manufacturers: In addition to black, white, yellow and red, some ESLs can already display blue, green and magenta and therefore also show colourful logos, graphics and photos. Particularly cold-resistant, waterproof, robust or even chemical-resistant ESLs are also available for special applications such as in freezers.
The digital price tags primarily utilise so-called e-ink technology, which is also used in eReaders. This technology ensures that the screen resembles a printed product and offers a very high level of reading comfort, as the display does not flicker and the image is very high-contrast and clear. The E-Ink price tags only consume energy when the content on the screen changes. This means that ESLs can be operated on batteries for several years - depending on the number of updates. Most manufacturers state an average battery life of 5-10 years with around two updates per day. For most ESL series, the batteries can also be replaced to extend the life of the ESL.